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Carmine Di Sibio
Chairman and CEO
Ernst & Young- EY
Five Times Square
New York NY 10036
We write to express our disappointment with the efforts by Ernst & Young to deny your former
partner, Karen Ward, a reasonable opportunity to have her claims of sexual harassment and
gender discrimination heard in a court of law. By limiting her recourse to forced arbitration at a
personal cost of hundreds of thousands of dollars, you are effectively silencing her and sending
a message to your other employees that their claims will not be given a fair hearing and that they
will have to pay exorbitant costs to simply have their claims heard. This case is a particularly
egregious example of the abuses that led New York State to pass legislation banning such forced
arbitration agreements in cases of harassment and discrimination in the first place.
New York State is not alone in rejecting forced arbitration in cases of harassment. The private
sector has also recognized that these requirements are vestiges of a past where sexual
misconduct in the workplace was tolerated or ignored. Companies such as Microsoft, Uber,
Google, Facebook, Lyft, Slack, Airbnb, Skadden, Arps, Slate, Meagher & Flom LLP, Sidley Austin,
Kirkland & Ellis, and Orrick, Herrington & Sutcliffe LLP have voluntarily dropped mandatory
arbitration requirements. It is disturbing that Ernst & Young is unwilling to recognize the negative
impact arbitration requirements have on the ability of workers to get a fair hearing and the
chilling effect these agreements can have on reporting.
While the problems with forced arbitration are clear, the facts in this case are even more
troubling. Ernst & Young has insisted that Ms. Ward pay half the costs of arbitration, which have
already added up to $185,000 with the case still in the discovery phase. If she had been permitted
to file in court, she would have only had to pay $450 in court costs to have her case heard. It is
obvious to us that requiring claimants to pay such exorbitant costs is a major obstacle to justice
for victims of harassment.
Ernst & Young ostensibly created the “Women. Fast Forward” program to “highlight [y]our own
commitment to the advancement of women in the workplace” and to “offer leadership and
guidance as [you] call upon others to put gender on their agenda.” However, Ernst & Young
cannot be a leader on gender equality while it is so far behind the curve in addressing workplace
harassment and continues to place barriers in the way of victims who are merely seeking a fair
chance at justice.
We urge Ernst & Young to reconsider its outdated approach to addressing gender inequity and
show that it is committed to providing all employees with a harassment-free workplace by
ensuring they have access to our justice system to address discrimination claims. Ernst & Young’s
current policy of outrageously expensive, binding arbitration imposes impossible burdens on
those who seek relief. It is time for Ernst & Young to move beyond lip service and make the
systemic changes necessary to truly be a leader in addressing inequality in the workplace.
Sincerely,
Tremaine Wright
Assembly Member, District 56